03-15-2012

Good afternoon to all-

We received three more questions and provided three more responses this week. Your managers have really gotten into the action with my last message. They, too, are engaged and researching more now than ever!

The goal that Steve has for these messages is to raise the bar for all - agents, management and staff. Knowledge is important, but wisdom on how to apply the knowledge to your business and to your clients is the key to top notch performance and top notch Prudential agents.

Question 1:

Currently I'm representing a seller who owns a large parcel in northern Michigan. The previous owner reserved the oil and gas rights thirty years ago. There has been no drilling ever done on the property. Does the previous owner continue to have the oil and gas rights?

Answer:

Well, it depends. Under the Michigan Dormant Minerals Act, under certain circumstances, reserved oil and gas rights will terminate after 20 years. This Act only applies to oil and gas rights. You should advise your seller to discuss this issue with an attorney to see what steps can be taken to clear title. This is also a good talking point at the listing presentation. Do they own the mineral rights?

Question 2:

My listing is a multi-family income producing property. The owner just informed me that he is now in the foreclosure process.The tenants have called me to say they no longer have to pay rent due to the foreclosure. Is this true?

Answer:

No, it’s not true. The tenants are still responsible for the payment of rent to the landlord under the terms of the lease, despite the property being in the foreclosure process. It is a different story once the property is officially bankowned.

Question 3:

Jimmy, my agent is representing a seller in the resale of a residential condominium unit. My agent just received a fax from the buyer’s agent stating that the buyer wants to terminate the purchase agreement pursuant to their nine day right of rescission. Can they do this?

Answer:

No, the nine day right of rescission under the State Condominium Act is only applicable to the initial sale of a residential unit from the developer to the first buyer (a brand new unit, so to speak). If a buyer wants a right to inspect the condo documents with the right to rescind,then it needs to be added to the purchase agreement as a contingency. I would recommend that if you represent a buyer in the purchase of a condo unit that you provide the buyer with the right to review all condo bylaws and the master deed prior to the purchase agreement and add a contingency prior to close, if deemed necessary.

I do appreciate the questions from a savvy group of agents! Next week we have some fair housing topics!